Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Saturn V who wrote (259585)	4/7/2009 6:45:57 PM
From: Dan3	Read Replies (1) \| Respond to of 275872

Re: In other parts of the world, you can bargain anything at the retail level. You see an individual buying one chip from a store as being the same as HP getting its annual pricing from Intel? It's not the same. HP can't walk across the street to another "Intel." If it were a consumer buying one chip, that would be possible.

To: Saturn V who wrote (259585)	4/7/2009 7:04:36 PM
From: combjelly	Read Replies (1) \| Respond to of 275872

"But I am curious why is that illegal ?" It is illegal when it is structured so that it locks out a competitor. Generally, all of these companies have a discount schedule quoted on a total volume, say 10k, 100k, 250k and so on. What Intel did in Japan was to tailor the schedule for each different customer and based on their expected volume each quarter. So Sony got a much different schedule than Toshiba or NEC. And the discounts were such that if they didn't buy at least around 95% from Intel, they would pay a lot more per chip than their competitors. So they basically had to be all or almost all Intel or all AMD. Any other mix meant they couldn't be price competitive. So it is known they did that in Japan. It isn't known but suspected, they did that with other companies.